The Impact of Dynamic Capabilities and Environmental Turbulence Towards Business Unit Performance Sir Kalifatullah Ermaya, Lili Adi Wibowo
Universitas Pendidikan Indonesia
Abstract
The good result of Business Unit Performance in a company is the final goal of all companies. However, the fast change of technology, markets, regulations and hyper competition have made business environment become more uncertain and unpredictable. These conditions are known as environmental turbulence.
Environmental turbulence might scrape the competitive advantage and cause a business unit difficult to preserve its competitive advantage. In order to defend competitive advantage in a turbulent environment, a business unit in companies requires to have dynamic capabilities, namely: capability to identify, to build, to integrate and to reconfigure companies activities to accommodate changes in an environment.
The purpose of this study is to discover the impact of dynamic capabilities and environmental turbulence towards business unit performance. This research was implemented in telecommunication organizations in Bandung which involved several business unit managers as the respondents. The method used was survey method, namely descriptive survey and explanatory survey. To test the hypothesis, the researcher used SPSS 22.
The result of this study gave several important findings. First, dynamic capabilities were the key factors to improve business unit performance in the telecommunication industry. Second, environmental turbulence affected positively towards business unit performance.
Keywords: Environmental Turbulence, Dynamic Capabilities, Business Unit Performance, Strategic Management
Topic: Strategic Management, Entrepreneurship and Contemporary Issues
